TCP Estate Planning · Updated November 2026
Date of Death or Alternate Valuation Date: Which Value Does the Estate Use?
Federal estate tax generally starts with date-of-death values, but a qualifying alternate-valuation election can change the measurement date.
Default rule
Estate property is generally valued as of the decedent's date of death.
Alternate valuation
A qualifying election can use the applicable later valuation date, while assets disposed of earlier can require special treatment.
Election requirement
The election is not available merely because values declined. Statutory requirements must be satisfied under current law.
Planning tradeoff
Changing value can affect both estate tax and the beneficiary's future income-tax basis.
The takeaway
A lower estate value can reduce estate tax but can also reduce beneficiary basis, so both consequences matter.
Related Summit guides
FAQ
Can every estate automatically elect a lower later value?
No.
Can the election affect beneficiary basis?
Yes.
Do assets sold before the alternate date require special treatment?
Yes.